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Inflation up 0.2 percent for June

The Consumer Price Index (CPI) for June reported that consumers paid 1.9 percent more last month than they did a year ago for the basket of goods and services included in the calculation for the index.The rate of inflation increased 0.2 percentage points from the 1.7 percent recorded in May 2013.Between May and June 2013, the average cost of goods and services in the CPI rose 0.3 percent. The all-items index increased from 121.7 to 122.0 index points in June.The CPI report explained this means that the basket of goods and services that cost $100 in April 2006 now cost $122.The health and personal care sector had the strongest impact on the twelve-month increase in the CPI, it stated. The total cost of the health and personal care basket increased 9.1 percent year-over-year.The transport, vehicles and food sectors also contributed to the rise in the annual rate of inflation, as price shifts in these sectors were 4.1 percent and 2.5 percent, respectively.Month by month analysis for transport and vehicles showed that price movement in the sector increased 1.6 percent in June following a 1.2 percent increase in May. The increase was attributed to a seasonal rise in the average cost of airfares of 19.4 percent.In contrast, overseas hotel accommodations fell by 4.8 percent.The fuel and power sector rose 1.8 percent in June, after a 2.7 percent decrease in May, noted the CPI. The cost of electricity increased 1.9 percent.The tobacco and liquor sector increased for the third consecutive month. The average price of beer and wine increased by 0.7 percent and 0.6 percent, respectively.Food prices in grocery stores were down 0.3 percent in June. However, the price of food purchased from restaurants increased 2.1 percent causing the food sector to increase 0.1 percent for the month.The health and personal care sector increased 0.1 percent in June following a 0.7 percent increase in May. The average cost of prescribed medicines rose 2.6 percent.The rent sector remained unchanged in June as it did in May. Average rental prices for rent-controlled properties increased by 0.2 percent, but were offset by an equal decrease in the average rental costs for properties not subject to rent control.The clothing sector was static in June with no price movement. Household goods, services and communications sector declined 0.1 percent in June following three months of no change.The average price for household supplies, such as food wraps and cleaning materials fell 0.2 percent.The education, recreation and reading sector decreased 0.1 percent in June. The average cost pet food fell 0.6 percent.Useful website: www.statistics.gov.bm.